Better System Trader

084: Handling noisy markets

Informações:

Synopsis

One of the biggest challenges we face as traders is strategies that either fail or experience a reduction in performance over time. There are a number of possible causes for this, one obviously being changes in the market. In podcast Episode 10, Perry Kaufman discussed the change in the markets and how they've become noisier over time, with an increase in erratic movements up and down. This increase in market noise can have a huge impact on trading strategies and particular trading styles too and we're going to hear a little bit more about that from Perry today, including: How market noise has changed over time and what it means to different markets, How to measure the level of market noise, The impacts market noise has on particular trading styles and how to adjust strategies accordingly, and How this information can be used to our advantage to determine the type of strategy that suits a market. So lets take a listen to Perry.